Multifamily homes are in demand across the US. The demand is so strong that, as per National Multifamily Housing Council (NMHC) and National Apartment Association (NAA)’s study, the country will need 4.6 million new apartment homes by 2030, or it will face a serious shortage. However, the future is not doom and gloom at all. Such a high surge in demand presents a serious opportunity for investors to channel their capital into multifamily homes. And if predictions are right, early investors will reap tremendous benefits.
While investing in multifamily housing is lucrative, the right location can muster an additional benefit. A strategically growing location determines the return on investment (ROI) and cash flow. We have compiled a list of the best cities in the US to invest in multifamily property.
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Here are the six best places in the US to invest in multifamily properties
1. Atlanta, Georgia
The Big Peach city is famous for its good quality properties and affordable housing prices. In recent years, Atlanta has witnessed rapid population growth that has accelerated the housing demand. Furthermore, the employment rate in the city has been on the rise, thanks to many large corporations like UPS, Delta Air Lines, and The Coca-Cola Company having their headquarters. Besides, essential infrastructure like schools is top-notch, attracting more and more families to this area.
2. Jacksonville, Florida
Located in the Sunshine State, Jacksonville is heaven for real estate investors. While it’s true that property prices are relatively higher than in other cities, investing in multifamily property will fetch lucrative returns in the long run. Jacksonville is famous for its beautiful weather, exotic beaches, and never-ending recreational activities.
3. Los Angeles, California
Home to Clippers, Los Angeles makes a strategic location for real investors. Many people are moving to LA looking for life-changing opportunities and increasing housing demand. Thus, finding a tenant won’t be a tough nut to crack if you are investing in multifamily properties. Furthermore, suburbs near LA like San Clemente, Torrence, El Segundo, and Beverly Hills have witnessed high population growth, making these areas lucrative for real estate investment.
4. Boise, Idaho
The capital city of “The Gem State” Boise has tremendous potential for multifamily properties. While the apartment rents in Boise declined slightly in 2021, they have increased by more than 26% in the past three years. Suburbs surrounding Boise like Garden City, Emmett, Nampa, and Caldwell are also excellent areas for multifamily property investment.
5. Charlotte, North Carolina
“The Queen City” is one of the cities in the country and is home to over 2.6 million people. Currently, around 1.1 million housing units are on the market, which makes it a lucrative city for real estate investors. Furthermore, rental prices have steadily increased over the years, with the asking rent per unit being $1,423. Growing suburbs like Fort Mill, Matthews, and Cornelius have also witnessed significant population growth, triggering the housing demand in those areas.
6. San Antonio, Texas
Although San Antonio has witnessed a recession in the apartment market, effective multifamily rent is likely to see positive growth in the coming years. “The Alamo City” from the “Loner Start State” is famous for its Market Square and San Antonio River. It is likely to fetch high rental income with a growing population across suburbs like Leon Valley, Live Oak, and Selma. Multifamily rents in San Antonio are $1,157 per month, and the effective rent is expected to increase by 13.3% year-over-year.
To Wrap Up
It’s no wonder that location plays the most important role in determining the price of a real estate property. This is especially true for suburbs near those cities as they benefit from both sides. Suburbs will fetch moderate rental income and make an excellent living place for people as they can also attract job opportunities like cities.
Homz Fund is the first-ever national multifamily housing fund. They are developing wellness-centric multifamily communities across the US. These communities are being developed with a focus on sustainability; something renters are seeking. Homz Fund is backed by the US treasury bond, which means the investor receives principal protection.